thestoryofmeaningfuluse

A Magazine Capturing the Story of Health- For People, Environment, Economy & Habitat

Sanofi-Aventis & Genzyme Conspiracy


Note from the Publisher:

The development plan for thestoryofmeaningfuluse.com is to archive meaningful story capture in a format that assures the a daily story can be archived with other related stories. We are building a program to provide our readers a long view of our story capture for educational purposes as we observe the stories to weave into an activity of sustainable impact.

This week we will be featuring a series of stories related to Sanofi-Aventis’s acquisition of Genzyme drawn from a 3 post series, originally published in

CSRwire Talkback | join the conversation –CSRwire is the leading source of corporate social responsibility and sustainability press releases, reports and information. 

Sanofi Aventis was an early adapter and contributor to the UN Global Compact Community.  Lavinia Weissman selected to follow this story of Sanofi’s acquisition of Genzyme as a way to report on the story of how Sanofi Aventis will embed responsible a framework of sustainability into the Genzyme culture and its performance, moving forward.

Let the story begin……………………………………………………………………………………..

Hostile Take Over or Sound, Sustainable Business Strategy?  – Post 1 of a 3 Part Series.

Search on Category: SanofiAventisStoryCapture to find all related articles.

By Lavinia Weissman

@WeCareHealth

Boston MA

original date of publication in CSRWireTalkback  07 October 2010

The Boston Globe published an article on Monday, October 4, 2010, titled “Sanofi-Aventis launches take over battle with Genzyme.”

On July 29, 2010, Sanofi-Aventis offered a fair price bid price for the purchase of Genzyme. On August 30, Genzyme confirmed it received an unsolicited bid of $69.00 per share. The bid was turned down by Genzyme’s CEO Henri Temeer.

Mergers among the Fortune 500 are increasing; for example, Pfizer acquired Wyeth and Merck acquired Schering-Plough. Acquisitions and mergers usually involve some form of workforce reduction, management of corruption and, of course, higher profits. Is there something different about Sanofi’s bid for Genzyme?

CEO Christopher A. Viehbacher came to Sanofi from GlaxoSmithKline in December 2008. His priority was to respond to declining profits occurring with the patent expirations of key drugs in 2013.

Viehbacher chose to accelerate CSR as a core strategy with a mission to improve the health of the world’s 6.8 billion citizens. Sanofi-Aventis’ 2009 Sustainability Report outlines an overview of programs in research and development that have a patient-centric focus.

Sanofi is now an emerging leader in global markets in Latin America, Africa, Russia, India, China and South Korea. Annual global sales total 29.3B (euros), making Sanofi the 3rd largest pharmaceutical company. Sanofi-Aventis has strengthened operations and organized itself to take innovation and research to market, drawing on its active participation in the UN Global Compact since its establishment in 2000.

While Genzyme is innovative in regards to research and development for cancer and other illnesses, it has proven to be weak in sustainability. A viral outbreak, a plant shutdown, low inventories and a $175M FDA fine disrupted Genzyme’s operations and reduced its share value to as low as $45. Bid rumors added value to a shaky year for Genzyme and increased its value per share to $71.

This invites the question:

Is Sanofi-Aventis’ bid for Genzyme simply another hostile take over or a bid for a sustainable core business strategy?

As of 20 March 2011 -The merger is still in process and moving forward in a positive way, what do you think now? What have you learned?  Post 2 will be posted Monday, April 4, 2011. Stay tuned.

_____________

Authors bio:

Lavinia Weissman is an sustainable market leadership coach, journalist, and publisher of thestoryofmeaningfuluse.com. As a speaker she describes the new emerging patterns of markets shaped by sustainable market leaders and the social networks they work with and employ.  As a coach, Lavinia works with all her clients to inspire professional development that assures a person the opportunity to embed sustainability as a leader into the network and culture of people they work with.

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